Ofgem investigate profit margins of home energy suppliers
In news to be filed under "no shit, Sherlock", Ofgem has announced an investigation into recent increases in energy prices, on the basis that suppliers are using the price hikes to make more profit than they should.
Rather than covering any escalating costs in supplying energy, the regulator believes the increases have swollen the coffers of suppliers by nearly 40 per cent - from an average net profit of £65 per customer in September, to £90 per customer now, based on recent increases by half the major energy suppliers.
Scottish Power recently announced they'll hike up electricity tariffs by nearly nine per cent, Scottish and Southern Energy customers are in for a 9.4% rise in their gas bill, while British Gas recently announced a 7% increase in gas and electricity charges.
Such an investigation does not guarantee prices will drop, or that any action will be taken against suppliers - but then again it rarely does: "We will go beyond our usual quarterly reports on prices and do a comprehensive review of the retail market and our recent reforms from the consumers' perspective," said Ofgem.